Controlling card-based mortgage computing

ABSTRACT

An electrical digital computer machine and a data processing system, methods of making and for using the machine, products produced thereby, as well as data structures and articles of manufacture pertaining thereto, and all necessary intermediates of that which is discussed herein, all in the field of computerized aspects of card crediting to mortgages and the like. A computer system applying a card debit to a mortgage, a first computer system enabling a debt to be incurred in connection with usage of a card, such as a debit, credit, or Sharia-compliant card. A second computer system can enabling a mortgage, such as a first mortgage, and apply debit from the card to the mortgage.

This patent application claims priority from U.S. patent applicationSer. No. 60/660,693 filed by the same inventor on 11 Mar. 2005,incorporated by reference, as well as incorporating by reference U.S.patent application Ser. No. 09/604,696, filed 26 Jun. 2000, and U.S.patent application Ser. No. 09/669,196, filed 25 Sep. 2000.

I. TECHNICAL FIELD

The technical field is computers and data processing systems. Dependingon the implementation, there is apparatus, a method for use and methodfor making, and corresponding products produced thereby, as well as datastructures, computer-readable media tangibly embodying programinstructions, manufactures, and necessary intermediates of theforegoing, each pertaining to computer-aided aspects of card creditingand debiting to mortgages and the like. More particularly, embodimentscan relate to a digital electrical data processing system havingparticular utility in financial fields related hereto. Still moreparticularly, embodiments can pertain to card (e.g., charge card, bankcard, contactless card, smart card, debit card, etc.) activity-basedmortgage crediting, along with automated generation of relateddocumentation, inter-computer communications, and networking.

II. Background Art

The industry has worked long and hard to sell cards. Yet the known priorart has shortcomings that have left many inadequately addressed needs,which the embodiments set forth below are intended to address.

III. Disclosure

In the area of said technical field, representatively, consider acomputer system (illustratively representing, for the sake of brevity,methods, articles of manufacture, transmitter, receiver, networkimplementations, etc.) structured to aid in controlling computing insuch exemplary (and not limiting) embodiments as controlling card-basedmortgage computing, e.g., first-mortgage computing.

IV. BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is an illustration of an embodiment focusing on hardwarefeatures;

FIG. 2 is an illustration of a flow chart for an embodiment;

FIG. 3 is an illustration of a flow chart for an embodiment;

FIG. 4 is an illustration of a flow chart for an embodiment;

FIG. 5 is an illustration of a flow chart for an embodiment;

FIG. 6 is an illustration of a flow chart for an embodiment;

FIG. 7 is an illustration of a flow chart for an embodiment;

FIG. 8 is an illustration of a flow chart for an embodiment;

FIG. 9 is an illustration of a flow chart for an embodiment;

FIG. 10 is an illustration of a flow chart for an embodiment;

FIG. 11 is an illustration of a flow chart for an embodiment;

FIG. 12 is an illustration of a flow chart for an embodiment;

FIG. 13 is an illustration of a flow chart for an embodiment;

FIG. 14 is an illustration of a flow chart for an embodiment;

FIG. 15 is an illustration of a flow chart for an embodiment;

FIG. 16 is an illustration of a flow chart for an embodiment;

FIG. 17 is an illustration of a flow chart for an embodiment;

FIG. 18 is an illustration of a flow chart for an embodiment;

FIG. 19 is an illustration of a flow chart for an embodiment;

FIG. 20 is an illustration of a flow chart for an embodiment;

FIG. 21 is an illustration of a flow chart for an embodiment; and

FIG. 22. is an illustration of a flow chart for an embodiment.

As used herein,“embodiment” should not be construed as the sole manner,but rather as an illustrative teaching, much as though teachingmathematical addition does not require setting out every numericalcombination to convey the concept extending beyond the teachingexamples.

V. Modes

The accompanying drawings illustrate embodiments intended to illustrateand exemplify in a teaching manner.

As used herein, the term“computer” generally refers to hardware orhardware in combination with one or more program(s), such as can beimplemented in software. Computer aspects can be implemented on generalpurpose computers or specialized devices, and can operate electrically,optically, or in any other fashion. A computer as used herein can beviewed as at least one computer having all functionality or as multiplecomputers with functionality separated to collectively cooperate tobring about the functionality. Logic flow can represent signalprocessing, such as digital data processing, communication, or asevident from the context hereinafter. Logic flow or“logic means” can beimplemented in discrete circuits, programmed computer, or theequivalent. Computer-readable media, as used herein can comprise atleast one of a RAM, a ROM, A disk, an ASIC, and a PROM. Industrialapplicability/technical affect is clear from the description, and isalso stated below, e.g., as regards controlling a computer system, orpart thereof, so as to affect efficiency management of computerresources, rate and manner of data transfer (e.g., by way ofstandardizing data by template input or computers in the system adaptedto cooperate such as by“knowing” the format, order, and/or significanceto attribute to data being transmitted/received.

By way of the following prophetic teaching, there can be computersupport, as in a data processing system, for implementing parts of, orfrom, a financial product or instrument to accomplish certain financialobjectives to and advance such as efficiency and/or security, over saidmanual systems and corresponding problems, and automated variants havinglimitations regarding management of corresponding computer resources.The computer system can have control means, varying from a menu to othermeans facilitating human control over the computer system so as toenable and disenable carrying out some or all of the functionalitycharacterized herein. Representatively (and not hereby limiting), thefunctionality can include enabling and/or disabling any one or more of:

associating card activity to increase and/or reduce mortgage ormortgage-related cost (the term“mortgage” being used broadly toencompass, for example, Sharia-compliant mortgages);

allocating card-related amounts to a mortgage, e.g., a first mortgage,over the Internet;

paying mortgages in combination or association with card activity;

increasing and/or reducing mortgage principle in association with cardactivity;

increasing and/or reducing other mortgage-related amounts, such asinterest (not, of course, in Sharia-compliant embodiments), insurance,payment of mortgage closing costs, which include mortgage insurance,inspections, appraisals, credit reports, special assessments, impactfees, new construction fees, homeowner assessments, points, tax escrows,stamps and other government fees and taxes, and downpayments etc.;

associating a mortgage and a card in a manner that is Sharia compliant;

communicating data relating to card/mortgage computing;

utilizing data input screens or templates in forming a data standardenabling carrying out the communication in a manner suitable forintegrated computing, e.g., as regards mortgages, insurance, titleinsurance, and other mortgage-related business;

facilitating trading of mortgages related to card activity;

facilitating consumer access to at least some card/mortgage computing;

enabling a reward system, even implemented in real time, sustaining theconsumer's perspective of the value of the credit card thus increasingthe likelihood of retaining the consumer's business;

enabling an amount from an unpaid card debit to be added to a mortgagesuch as a first mortgage;

enabling an ongoing relationship between card usage and a mortgageprovider or holder;

These and/or the other computer-aided embodiments herein, as apparentfrom the specification as a whole, can be carried out by providing animproved digital electrical computer-based system configured to addressand/or control the embodiments. The system can, as may be desired in oneapplication or another, be thought of as including a machine (programmedcomputer or computers), methods for making and using the same, productsproduced by thereby, data structures, and necessary intermediates (e.g.,data computed along the way). The system, as may be desired in oneapplication or another, be thought to include a system such as that forcard (bank, credit, debit, contactless, cell phone, or the like)activity-based mortgage crediting and/or debiting. More particularly,the foregoing can be carried out by steps including: associating cardactivity with a mortgage of a cardholder; crediting and/or debiting anamount to the mortgage responsive to the card activity (which may bebalance on the card, e.g., after some period of time); and generatingoutput including the charge card activity-based mortgage creditingand/or debiting; wherein at least some of the steps are carried out by adigital electrical computer system. Note that the system may be directedto crediting or to debiting or to both—this is a matter of choice inpreferred embodiment for a particular circumstance or application.

In any of the embodiments, the method can be carried out furtherincluding the step of: communicating a funds transfer to the cardholder.

In any of the embodiments, the method can be carried out with the stepof communicating including: printing a check for the amount; printing acoupon with the amount for carrying out payment of the mortgage or cardwith the check; and combining the check and the coupon with a statementof the card activity in an envelope so as to address the envelope to thecardholder.

In any of the embodiments, the method can be carried out furtherincluding the step of: communicating a funds transfer to a mortgageservicer or a funds transfer from the mortgage servicer, associatingcard activity with an internal mortgage, which is a mortgage or mortgageservicing either wholly or partially within the credit card issuer'scorporation, company, subsidiary, affiliate, or related entity, andassociating card activity with an external mortgage, which is themortgage or mortgage servicing not being part of the credit cardissuer's corporation, company, subsidiary, affiliate, or related entity.

In any of the embodiments, the method can be carried out such that thecommunicating includes an electronic funds transfer.

In any of the embodiments, the method can be carried out such that thecommunicating includes: printing a check for the amount; printing acoupon with the amount for carrying out payment of the mortgage or cardwith the check; and combining the check and the coupon with a statementof the card activity in an envelope so as to address the envelope to themortgage servicer or card issuer.

In any of the embodiments, the method can be carried out furtherincluding the step of: computing a forecast for repayment of themortgage from the card activity or increase of payment or negativeamortization field; and wherein: the step of generating output includesgenerating output including the forecast.

In any of the embodiments, the method can be carried out furtherincluding the step of: communicating the forecast and payment ornegative amortization field changes to the cardholder.

In any of the embodiments, the method can be carried out furtherincluding the step of: changing an allocation of the credit and debitactivity with the mortgage in response to an instruction from thecardholder.

In any of the embodiments, the method can be carried out furtherincluding the step of: changing an allocation of the credit and debitactivity between the mortgage and a second mortgage in response to aninstruction from the cardholder.

In any of the embodiments, the method can be carried out furtherincluding the step of: changing an allocation of the credit and debitactivity between interest, principle, and closing costs, scheduledinstallment payment, rent payment, fee payment for the mortgage inresponse to an instruction from the cardholder.

In any of the embodiments, the method can be carried out furtherincluding the step of: changing an allocation of the credit and debitactivity with the mortgage in response to an instruction from themortgage holder.

In any of the embodiments, the method can be carried out furtherincluding the step of: changing an allocation of the credit and debitactivity between the mortgage and a second mortgage in response to aninstruction from the mortgage holder.

In any of the embodiments, the method can be carried out furtherincluding the step of: changing an allocation of the credit and debitactivity between interest, principle and closing costs of the mortgage ,scheduled installment payment, rent payment, fee payment in response toan instruction from the mortgage holder.

In any of the embodiments, the method can be carried out such that thestep of changing is carried out in response to the instruction from themortgage holder received over a network.

In any of the embodiments, the method can be carried out furtherincluding: allocating a portion of the credit and debit activity betweenthe mortgage and a charity; and issuing a tax deduction statement to thecardholder.

In any of the embodiments, the method can be carried out still furtherincluding: allocating contributions received from a charity or otherassistance program to the cardholder.

In any of the embodiments, the method can be carried out furtherincluding the steps of: computing an annual statement of said creditingand debiting; and communicating the annual statement to the cardholder.

In any of the embodiments, the method can be carried out such that thestep of computing an annual statement includes: computing mortgageinterest paid by the crediting.

In any of the embodiments, the method can be carried out furtherincluding the steps of: associating a monthly payment with the mortgage;and communicating a funds transfer including the payment to a mortgageservicer.

In any of the embodiments, the method can be carried out furtherincluding the steps of: associating an allocation of the credit anddebit activity with the mortgage and with a second mortgage of thecardholder; wherein the step of crediting and debiting the amount to themortgage is also responsive to the allocation; and further includingcrediting and debiting a second amount to the second mortgage responsiveto the allocation; wherein the step of generating the output includesgenerating the output including the crediting and debiting a secondamount to the second mortgage.

In any of the embodiments, the method can be carried out furtherincluding the step of: associating the mortgage with second cardactivity of a second cardholder; crediting an amount to the mortgageresponsive to the second card activity; and wherein the step ofgenerating output includes generating the output including the secondcharge card activity-based mortgage crediting and debiting.

In any of the embodiments, the method can be carried out furtherincluding the step of: generating second output including the secondcharge card activity-based mortgage crediting and debiting, but notincluding the card activity of the cardholder of the mortgage; andcommunicating the second output to the second cardholder.

In any of the embodiments, the method can be carried out furtherincluding the step of: communicating a funds transfer to a charity forpayment of the mortgage.

In any of the embodiments, the method can be carried out furtherincluding the step of: using a second computer to compute a valuation ofa mortgage-backed security in response to indicia of said crediting anddebiting.

In any of the embodiments, the method can be carried out, or perhapsviewed differently, as a method for carrying out card activity-basedmortgage crediting and debiting, the method including the steps of:forming a combination in an envelope, the combination including at leasttwo of: a check printed with an amount to pay a mortgage and cardbalance, said amount determined by crediting and debiting responsive tocard activity of a cardholder; a coupon printed with the amount formaking the payment of the mortgage and card balance with the check; anda statement of showing the card activity and the crediting and debiting.

In any of the embodiments, the method can be carried out such that thestep of forming includes three of said check, said coupon and saidstatement; and further including the step of: printing an address on theenvelope so as to address the envelope to the cardholder.

In any of the embodiments, the method can be carried out such that thestep of forming is carried out with at least two of said check and saidcoupon; and further including the steps of: printing an address on theenvelope so as to address the envelope to a mortgage servicer and cardissuer; combining said statement with a second envelope; and printing anaddress on the second envelope so as to address the second envelope tothe cardholder.

In any of the embodiments, the method can be carried out, or perhapsviewed differently, as a method for making a digital electrical computersystem corresponding to carrying out one or more activities indicatedherein, for example, programmed for carrying out card activity-basedmortgage crediting and debiting.

In any of the embodiments, the method can be carried out including thesteps of: providing a digital electrical computer and data processingsystem comprising a digital electrical computer electrically connectedto an input device for inputting data and to an output device; andprogramming the digital electrical computer to associate card activitywith a mortgage of a cardholder, to credit and debit an amount to themortgage responsive to the card activity, and to generate outputincluding the charge card activity-based mortgage crediting anddebiting, to form the digital electrical computer system programmed forcarrying out card activity-based mortgage crediting and debiting.

In any of the embodiments, the method can be carried out such that theprogramming includes programming the digital electrical computer totrigger an electronic funds transfer to another digital electricalcomputer.

In any of the embodiments, the method can be carried out, or perhapsviewed differently, as a digital electrical computer system programmedfor carrying out card activity-based mortgage crediting and debiting,the computer system including: a digital electrical computer and dataprocessing system comprising a digital electrical computer electricallyconnected to an input device for inputting data and to an output device,said digital electrical computer programmed to associate card activitywith a mortgage of a cardholder, to credit and debit an amount to themortgage responsive to the card activity, and to generate outputincluding the charge card activity-based mortgage crediting anddebiting, said output including at least two of: a check printed with anamount to pay a mortgage and card balance, said amount determined bycrediting and debiting responsive to card activity of a cardholder; acoupon printed with the amount for making the payment of the mortgageand card balance with the check; and a statement of showing the cardactivity and the crediting and debiting.

In any of the embodiments, the method can be carried out, or perhapsviewed differently, as a method for carrying out computerized cardactivity-based mortgage crediting and debiting, the method including thestep of: crediting and debiting card activity to a mortgage payment inresponse to an instruction from a mortgage holder received over theInternet.

In any of the embodiments, the method can be carried out, or perhapsviewed differently, as a method for carrying out adjusting an allocationfor a mortgage payment, for example, between principal and interest, oras between mortgages or in an amount such as pay off, or more rapid orslower payment, from the mortgage holder.

Along analogous lines, an embodiment can also be viewed as a method forcard activity-based residential expense crediting, the method includingthe steps of: associating card activity with an external residentialexpense; crediting an amount to the residential expense responsive tothe card activity; and generating output including the cardactivity-based residential expense crediting; wherein at least some ofthe steps are carried out by computer.

In any of the embodiments, the method can be carried out, or perhapsviewed differently as including the step of: applying some of the amountin a funds transfer to pay the expense.

In any of the embodiments, the method can be carried out, or perhapsviewed differently such that the step of associating card activity withan external residential expense includes the step of entering externalmortgage-identifying data; and carrying out the step of creditingaccording to the data.

In any of the embodiments, the method can be carried out, or perhapsviewed differently such that the step of associating card activity withan external residential expense includes the step of entering externalmortgage-identifying data; and carrying out the step of creditingaccording to the data.

In any of the embodiments, the method can be carried out, or perhapsviewed differently such that the external residential expense is aclosing cost.

In any of the embodiments, the method can be carried out, or perhapsviewed differently such that the external residential expense is adownpayment.

In any of the embodiments, the method can be carried out, or perhapsviewed differently, such that the external residential expense isinsurance.

Another view is that an embodiment can encompass a method for cardactivity-based residential expense crediting, the method including thesteps of: associating card activity with a non-mortgage residentialexpense; crediting an amount to the residential expense responsive tothe card activity; applying some of the amount to produce a payment forthe expense; and generating output including the crediting and theapplying; wherein at least some of the steps are carried out bycomputer.

In any of the embodiments, the method can be carried out, or perhapsviewed differently, such that the step of applying includes producing aclosing cost payment as the payment for the expense.

In any of the embodiments, the method can be carried out, or perhapsviewed differently, such that the step of applying includes producing adownpayment as the payment for the expense.

In any of the embodiments, the method can be carried out, or perhapsviewed differently, such that the step of applying includes producing aninsurance payment as the payment for the expense.

In any of the embodiments, the method can be carried out, or perhapsviewed differently, such that the step of applying includes producing apayment for at least one discount point as the payment for the expense.

In any of the embodiments, the method can be carried out, or perhapsviewed differently, such that the step of applying includes producing aprepaid interest payment as the payment for the expense.

In any of the embodiments, the method can be carried out, or perhapsviewed differently, such that the step of applying includes producing apayment to an escrow account as the payment for the expense.

In any of the embodiments, the method can be carried out, or perhapsviewed differently, such that the step of applying includes producing apayment triggering acquisition of a member of the group the groupconsisting of a boat, a motor home, a mobile home, a trailer, mineralrights, water rights, riparian rights, and parking space acquisition asthe payment for the expense.

In any of the embodiments, the method can be carried out, or perhapsviewed differently, such that the step of applying includes producing atax payment as the payment for the expense.

In any of the embodiments, the method can be carried out, or perhapsviewed differently, such that the step of applying includes producing afee payment from the group consisting of a an impact fee, newconstruction fee, government fee, recording fee, transfer fee,miscellaneous fee, mitigation fee, origination fee, commission, reviewand funding fee, wire transfer and courier fee, title and closing fee,an underwriting processing fee, and a flood certificate fee as thepayment for the expense.

In any of the embodiments, the method can be carried out, or perhapsviewed differently, such that the step of applying includes producing apayment for a cost from the group consisting of a stamp, a titleendorsement, a tax certificate, an environmental and termite inspection,a radon test, an inspection, an appraisal, abstract search, titlesearch, title examination, title insurance binder, and a credit reportas the payment for the expense.

In any of the embodiments, the method can be carried out, or perhapsviewed differently, such that the step of applying includes producing apayment for fee payment from the group consisting of a tax service fee,an architect fee, an engineering fee, a surveying fee, an attorney fee,a realtor fee, and a notary fee as the payment for the expense.

In any of the embodiments, the method can be carried out, or perhapsviewed differently, such that the step of applying includes producing apayment from the group consisting of a dockage fee and a marina fee asthe payment for the expense.

In any of the embodiments, the method can be carried out, or perhapsviewed differently, such that the step of applying includes producing apayment of a cost from the group consisting of a lot cost, land cost,equity sharing cost, development cost, infrastructure cost, materialcost, landscaping, fix-up cost for work and materials used to close theloan, house-hunting costs, and moving cost as the payment for theexpense.

In any of the embodiments, the method can be carried out, or perhapsviewed differently such that the step of applying includes producing apayment of a cost from the group consisting of an ongoing residentialexpense, the expense from the group consisting of a special assessment,a homeowner assessment, a membership fee, an association due, commonarea fee, and parking maintenance as the payment for the expense.

In any of the embodiments, the method can be carried out, or perhapsviewed differently such that the step of applying includes producing apayment of a cost from the group consisting of appliance acquisition,appliance upgrade, and a material upgrade as the payment for theexpense.

In any of the embodiments, the method can be carried out, or perhapsviewed differently such that the step of applying includes producing apayment of a rent as the payment for the expense.

In any of the embodiments, the method can be carried out, or perhapsviewed differently as including the step of: applying a preferentialcrediting rate in the crediting for an internal expense.

In any of the embodiments, the method can be carried out, or perhapsviewed differently such that the step of applying is carried out inresponse to an instruction received over the Internet.

In any of the embodiments, the method can be carried out, or perhapsviewed differently such that the step of applying includes communicatingincludes printing a check for the amount; printing a coupon with theamount for carrying out payment of the mortgage with the check; andcombining the check and the coupon with a statement of the card activityin a computer-addressed envelope so as to address the envelope.

In any of the embodiments, the method can be carried out, or perhapsviewed differently, including the step of: changing an allocation of thecredit activity between expenses in response to an instruction from thecardholder.

In any of the embodiments, the method can be carried out, or perhapsviewed differently, as including the step of: changing an allocation ofthe credit activity between interest and principle in response to aninstruction from a holder from the group consisting of the cardholderand an expense holder.

In any of the embodiments, the method can be carried out, or perhapsviewed differently as including the step of: allocating a portion of thecredit activity to a charity; and

issuing a tax deduction statement responsive to the portion.

In any of the embodiments, the method can be carried out, or perhapsviewed differently as including the steps of: computing an annualstatement of said crediting; and

communicating the annual statement to the cardholder.

In any of the embodiments, the method can be carried out, or perhapsviewed differently as including the step of computing an annualstatement, and including: computing mortgage interest paid by thecrediting.

In any of the embodiments, the method can be carried out, or perhapsviewed differently as including the steps of: allocating a portion ofthe amount between multiple mortgages.

In any of the embodiments, the method can be carried out, or perhapsviewed differently as including the steps of: associating the expensewith second card activity of a second cardholder; crediting an amount tothe expense responsive to the second card activity; and wherein the stepof generating output includes generating the output including the secondcharge card activity-based crediting.

In any of the embodiments, the method can be carried out, or perhapsviewed differently as including the step of: communicating a fundstransfer to a charity for payment of the expense.

Still another view is that an embodiment can encompass a method forcarrying out card activity-based residential expense crediting, themethod including the steps of: forming a combination in an envelope, thecombination including at least two of: a check printed for the paymentof the expense; a coupon printed for making the payment with the check;and a statement of showing the card activity and the crediting.

Still another view is that an embodiment can encompass a digitalelectrical computer system programmed for carrying out cardactivity-based residential expense crediting, the method including thesteps of: providing a digital electrical computer and data processingsystem comprising a digital electrical computer electrically connectedto an input device for inputting data and to an output device; andprogramming the digital electrical computer to associate card activitywith an external residential expense, to credit an amount to the expenseresponsive to the card activity, and to generate output including thecard activity-based crediting, to form the digital electrical computersystem programmed for carrying out card activity-based mortgagecrediting.

Still another view is that an embodiment can encompass a method formaking a digital electrical computer system programmed for carrying outcard activity-based residential expense crediting, the method includingthe steps of: providing a digital electrical computer and dataprocessing system comprising a digital electrical computer electricallyconnected to an input device for inputting data and to an output device;and programming the digital electrical computer to associate cardactivity with an external residential expense, to credit an amount tothe expense responsive to the card activity, and to generate outputincluding the card activity-based crediting, to form the digitalelectrical computer system programmed for carrying out cardactivity-based mortgage crediting.

Still another view is that the an embodiment can encompass a method formaking a digital electrical computer system programmed for carrying outcard activity-based residential expense crediting, the method includingthe steps of: providing a digital electrical computer and dataprocessing system comprising a digital electrical computer electricallyconnected to an input device for inputting data and to an output device;and programming the digital electrical computer to associate cardactivity with a non-mortgage residential expense, to credit an amount tothe residential expense responsive to the card activity, to apply someof the amount to produce a payment for the expense, and to generateoutput including the crediting and applying, to form the digitalelectrical computer system programmed for carrying out cardactivity-based mortgage crediting.

Still another view is that an embodiment can encompass a digitalelectrical computer system programmed for carrying out cardactivity-based residential expense crediting, the computer systemincluding: a digital electrical computer and data processing systemcomprising a digital electrical computer electrically connected to aninput device for inputting data and to an output device, said digitalelectrical computer programmed to associate card activity with anon-mortgage residential expense, to credit an amount to the residentialexpense responsive to the card activity, to apply some of the amount toproduce a payment for the expense, and to generate output including atleast two of: a check printed for the payment of the expense; a couponprinted for making the payment with the check; and a statement ofshowing the card activity and the crediting.

Still another view is that an embodiment can encompass a digitalelectrical computer system programmed for carrying out cardactivity-based residential expense crediting, the computer systemincluding: a digital electrical computer and data processing systemcomprising a digital electrical computer electrically connected to aninput device for inputting data and to an output device, said digitalelectrical computer programmed to associate card activity with anexternal mortgage residential expense, to credit an amount to theresidential expense responsive to the card activity, to apply some ofthe amount to produce a payment for the expense, and to generate outputincluding at least two of: a check printed for the payment of theexpense; a coupon printed for making the payment with the check; and astatement of showing the card activity and the crediting.

Still another view is that an embodiment can encompass a method forcarrying out computerized card activity-based residential expensecrediting, the method including the step of: crediting card activity toa non-mortgage expense payment and/or an external expense payment inresponse to a cardholder instruction received over the Internet.

FIG. 1 shows, in block diagram form, the computer-based elements, whichcan be utilized to implement a teaching embodiment. FIG. 1 is anoverview. There can be, depending on the preferred manner of carryingout one embodiment or another, eleven components to the presentembodiment:

1 Data Input Screens & Terminal (1)

Terminal 1 represents computers and computer screens used to enter datainto the system, and to view data posted to the system. Virtually anycurrent or recent model personal computer platform may be employed. Atypical Cardholder (2) Data Input Screen could be an iMac personalcomputer connected to an Internet network interface using built-in 56Kor Ethernet Internet Protocols. A typical Customer Service/Telco (3)Data Input Screen could be a Gateway 2000 PC running Windows 2000, a 16″Radius monitor, and a Local or Wide Area Network Ethernet connection toan internet network interface. Similarly, Customer Service/Mail (4)could be a Gateway 2000 PC running Windows 2000, a 20″ RadiusintelliColor e monitor, and a Local or Wide Area Network Ethernetconnection to an Internet network interface. Frequently, the descriptionwill refer to the“user”, meaning the system or part thereof is beingaccessed using a network-enabled computer by the cardholder, a Telcorepresentative, or a Mail representative.

2 Network Communications Systems (5)

With regard to Network Communications Systems (5), any upstream,internet Service Provider (ISP) utilizing TCP/IP to transmit databetween Data Input Screens. Examples of ISPs include uunet, starnetusa,and Exodus. Well-known and accepted protocols may be any transmissionstandard able to conduct digital information, including optical,FireWire, fiber optic, infrared, cellular, wireless, hard wire, SCSI,ethernet, trunk lines, satellite, and other like systems, may beemployed.

3 Central Processor & Digital Computer (7)

Central Processor & Digital Computer (7) represents the electricalcomputing devices that receive, process, store, analyze and distributedata. Numerous computing devices may be employed as business volumegrows. The Central Processor and Digital Computer can be comprised ofthese components:

-   -   one or more CPUs (Central Processing Units);    -   one or more digital computers commonly referred to as“servers”        (“servers” are the gateway between Local Area and Wide Area        digital computers);    -   Data storage (hard drives)    -   Routers;    -   Applications, such as web browsers, word processors, database        engines, etc.

4 Mortgagor and Mortgage Data (6)

Mortgagor & Mortgage Data (6) represents third-party data sent viaElectronic File Transfer (EFT) and a TCP/IP network communicationssystem (5). Mortgages serviced by an embodiment may, on occasion, bebought and sold by mortgage provisioners. Interaction with mortgageprovisioners is necessarily to enable the embodiment, i.e., tofacilitate the payment of credits (see FIG. 16), and also to compute avaluation of a mortgage-based security in response to indicia of saidcrediting. Mortgages serviced by an embodiment may, on occasion, besolicited by other mortgage provisioners offering more attractive ratesand/or terms

5Help (8)

Help (8) represents the CEhow-to, and troubleshooting guide available atall times to cardholders, cardholder applicants, and customer servicerepresentatives. It is accessed via a web browser, such as version 4 orbetter of either Microsoft Internet Explorer or Netscape Navigator. Helpis context-enabled, indexed, and searchable by keyword and phrase.

6 Cardholder Account Registration (9)

Cardholder Account Registration (9, see FIGS. 2, 3, 4) illustrates howcardholder applicants can begin the mortgage-crediting process. In thisexemplary description, cardholders, cardholder representatives, and userall refer to persons directly employing a network-enabled computer toaccess the embodiment.

7 Cardholder Transaction Function (11)

7 Cardholder Transaction Function (11, FIG. 5) shows how credit or othercard transaction activity is typically managed through a third party andtransmitted to the system, where appropriate credits and debits aredetermined and issued.

8 Cardholder Credits and Debits Function (12)

8 Cardholder Credits and Debits Function (12, FIG. 16) illustratesnotable functions. Transaction data received from FIG. 200 functions areprocessed and applied, subject to criteria established by thecardholder, the card provider, other cardholders, and mortgagors.

9 Cardholder Settings (10)

9 Cardholder Credits and Debits Function (12, FIG. 16) shows how thecardholder manages his/her credit and debit transfers through CardholderSettings. The Cardholder may alter his/her credit Settings at any time,either directly via a Data Input Screen (2), or by using either CustomerService/Telco (3) or Customer Service/Mail (4) representative as anintermediary. Debit transfers may also be altered here but may involveapproval of mortgagee or third party.

10 Reporting Function (13)

10 Reporting Function (13, FIG. 17,18,19) illustrates a way for carryingout due diligence functions: (1) cardholder statement generating; (2)tax compliance and document generating; (3) third party informationexchange & verification.

11 Subscriber Database (14)

11 Subscriber Database (14) illustrates a representative central storagesystem for all individual cardholder data.

Turning now to the Cardholder Account Registration Function (FIG.2),there is illustrated a cardholder application, approval, and activationprocess.

Application

Use of an embodiment can involve a user to applying for a credit orother such card. Typically, applications are managed via third-partycredit card from provisioners such as MBNA, VISA, FirstUnion, and manyothers. A cardholder or cardholder applicant may utilize an embodimentin one of three exemplary methods:

via Data Input Screen at Terminal (1)

Using a network-enabled computer, such as a PowerPC604e and Apple Cinemadisplay, the cardholder links to the network site by telephone, ortelephone-adaptive device, such as TDD (16). Using his or her touch-tonephone or TDD, the customer interacts with Customer Service Center/Telcorepresentatives (3).

a printed application (18), which the applicant submits via mail

Customer Service/Mail representatives process mailed applications (4)and entered as input into the terminal 1.

Regardless of its source, all incoming applications are routed throughNetwork Communications Systems (5) to the Central Processor DigitalComputer (7), where the application information (FIG. 3) is requested,entered, and submitted.

Turn now to the Cardholder Account Registration: Credit Card ProvisionerRegistration Process (FIG.3). The list of requested information statedin FIG.3 (at Block 20), constitutes information requested from a creditcard applicant by the provisioner. For the purposes of this embodiment,the following line items should be requested:

-   -   First Name, Middle Name, Last Name, Street Address, City, State        (22);    -   Zip Code (24);    -   E-mail address (26); and    -   Home Phone (28).

Once the application has been submitted (in one way or another)electronically, it is reviewed and either approved or rejected (30). Asnoted earlier, this is a third-party process, including issuance of acredit card number.

If rejected, standard protocols call for the generation of a refusalletter, which is mailed to the applicant (32). If accepted, thenapplicant information is transmitted from the card provisioner to thesystem via (34).

Here, the embodiment can execute some interesting possible functions.

1. Cardholder datafile (42)

The embodiment generates a timestamp ID for the Cardholder Datafile(42).

The timestamp ID is a temporary name for the data file, and also will beused by the applicant as a temporary password. Application data suppliedby the credit card provisioner (20) is transmitted into the file (42).

Typically, this data is transmitted as a text file using a common datafield delineation procedure and Electronic Data Interface (EDI) InternetProtocols. In addition to application information, it includes creditcard number, credit limit, and expiration date.

2. Unique email and data file name (36)

Computer code is employed to parse information requested in Elements 22and 26, generating a unique email address for the new cardholder. Forexample, a new cardholder provides the following data (20):

Name: Phillip

Middle: [null]

Last: Carragher

Street Address: 970 East Lane

City: Windsor

State: CO

The embodiment generates the unique email:

Phillip_Carragher_(—)970EastLane_Windsor_CO@mail.mortgagebuyers.com

The Central Processor (7) searches the subscriber database (14) forduplicate addresses. In the highly unlikely event that a duplicate isfound, the CPU will modify the email address by altering the mail servername, e.g.,

Phillip_Carragher_(—)970EastLane_Windsor_CO@mail2.mortgagebuyers.com. Ifthat address is also a duplicate, the embodiment will continue to searchfor the first available unique address, e.g.:

Phillip_Carragher_(—)970EastLane_Windsor_CO@mail3.mortgagebuyers.com,etc.

At no time will the cardholder/applicant see an error message appear onscreen advising that another user has already taken a submitted ID. Oncea non-duplicate address is ascertained, the Central Processor (7)replaces the time stamp ID in the cardholder data file (42) with thenewly generated email address.

3. Existing email verification and redirect. (36)

The Central Processor (7) reads the email field of the cardholder,sapplication (26). If the field value is not [null], a mail filterinserts the field value into the cc: field parameters for all outboundcardholder email (see FIG. 8). If the field value is [null], thecardholder data file (42) is flagged as CEnon-email accessible., Novalue is entered in the cc: field parameter.

4. Public Key generation (38)

An notable possible component of the embodiment is security, e.g., thegeneration of a Public Key, which may be used by cardholders to contactand transact with other cardholders. The Public Key is therefore not aCEsecret, password. However, in order to preserve the privacy ofcardholders, the Public Key is not a readily discernable keycombination, such as a name, address, credit card number or socialsecurity number.

Each Public Key can be parsed from the Home Phone (28) and Zip Code (24)data contained the user application (20). For example:

Home Phone: 970-686-0332

Zip Code: 33245

Generates a Public Key Code of 686033233245. The generated Public Codeis stored in the user data file (42). The Public Code is managed usingthe Public Code Status (FIG. 19) interface. [NOTE: special settings forthe Public Code may be enabled (FIG. 19) following completion of thecardholder application, approval and activation process.]

5. Balance transfer and other awards (40)

The embodiment operator, credit provisioners and/or third parties mayfrom time to time elect to award new approved applicants with credits,special rates, or other awards.

These are promotional items serving as inducements to apply. It isanticipated such offers will be advertised. It is further assumed thatthe awards, their relative value, and their availability, will changefrom time to time. Awarded credits are reported to the cardholder atFIG. 17, Available Credits (484).

6. Mortgagor Data Transfer Authorization (43)

This function relates to implementation of loan auctioning., TheCardholder (2) authorizes or prohibits the embodiment from retrievingthe cardholder's (2) complete electronic mortgage file from his/hermortgage provisioner (6). If the cardholder prohibits the transfer, nofurther action is taken. If enabled (“YES”), the embodiment requests thedata transfer (6,FIG. 1). The cardholder (2) may link to FIG. 20,Auction Management, to establish opt-in criteria. At this time, theembodiment has processed and stored an approved cardholder's applicationinformation. An email address and account has been generated. A publickey has been created.

Awards, if any, have been credited. Mortgage Data Transfer has beenauthorized or disallowed.

7. Authorization

The cardholder now may activate the account (FIG. 4). All cardholdersreceive an Applicant Acceptance Notification (44) that contains theirnew credit card number(s), credit information, billing information,authorization information and Public Key (38). The Notification (44) isdelivered in three forms: (i) a Postal Mail package (46), which containsthe above information, as well as the physical credit card(s), is sentto all cardholders; (ii) email (48), is transmitted to all new useremail accounts, wherein the email contains the same information as theletter; and/or (iii) in lieu of the card, cardholders receive theinformation necessary to activate and use the card immediately onlineand for other cardless credit purchases (e.g., catalog ordering), and ofcourse the card(s) can be sent via Postal Mail package (46).

Cardholders who applied via telephone using a Customer Service/Telcorepresentative (3), similarly receive the mail letter and emaildescribed above. The Telco representative relay information (includingcard number[s]) to the user. All users can eventually receive theirphysical credit card(s) via the Postal Mail package (46).

The embodiment now authorizes card use (50). Authorization may takeplace immediately upon completion of the just-described Approvalprocess, or at any time subsequently. In either case ^ immediate ordelayed authorization ^ authorization is performed via computer, eitherby the cardholder online (2), or via Customer Service/Telco (3).

In the former case (2), the cardholder uses his or her computer (1) toaccess the network (5) and central processor (7) directly. In the lattercase (2), relevant information is passed via telco device to a ServiceCenter/telco representative, who then passes the data via the network(5) to the central processor (7). [NOTE: The various available protocolsfor authorizing new card use via telco are well known and thus notdescribed here in detail.) Login (52) utilizes a combination of thecardholder credit card number, followed by the cardholder Public Key(38). Data entered by the cardholder is compared against the number andPublic Key stored in the cardholder data file (42).

If the Public Key (38) or card number is incorrect, the cardholder mayattempt to reenter (54) the information (52). In the event of threelogin failures, the terminal operator (cardholder or CustomerService/Telco defaults to the context-sensitive Help screen (5).

If Public Key and credit card numbers are correct, the login issuccessful and recorded in the customer data file (42).

Cardholder transaction capability is immediately activated (FIG. 5) andthe embodiment links the user (cardholder (2) or Customer Service/Telco[3]) to Cardholder Settings (FIG. 6).

The Cardholder Application Process (FIG. 2,3,4) is complete, and forTransactions (FIG. 5), the Transactions Function utilizes standardprotocols to initiate, authorize, and track credit card transactions.Transactions (56) are authorized by upstream transaction processors(58), which transmit (5) to the Central Processor (7), which logsactivity into the Cardholder Transaction Database (62), linked to theCardholder Data File (42). Transaction data is routed to CardholderCredit Allocation (FIG. 16), and Reporting (FIG. 17).

Turning to Cardholder Settings (FIG. 6), numerous functions can becarried out, all of which are accessible preferably solely by Data InputScreen Terminal (1):

-   -   Main settings interface (FIG. 6);    -   Password creation and modification (64) (FIG. 7);    -   Email status (66) (FIG. 8);    -   Public key (68) (FIG. 9);    -   Mortgage Allocation (70) (FIG. 10);    -   Allocation Options (FIG. 11);    -   Mortgage Pool Non-cardholder Contribution Allocation (72) (FIG.        12);    -   2nd Cardholder Allocation (74) (FIG. 13);    -   2nd Cardholder Allocation Restrictions (FIG. 14);    -   Third Party Allocations (FIG. 21); and    -   Application Modification (76) (FIG. 15).

Settings are stored in the Cardholder Data File (42). Settings may bealtered solely by use of a Data Input Screen Terminal (1). Changes maybe input directly by the cardholder (2), employing a computer such as aniBook laptop utilizing a 56K internal modem and an Internet ExplorerVersion 5 browser, by a Customer Service/Telco representative (3) actingon behalf of a cardholder, or by a Customer Service/Mail representative(4) charged with inputting Settings data supplied to the embodiment viathe cardholder statement (FIG. 17). All changes to settings areconfirmed through (78) FIG. 18.

More particularly, in Password Creation and Modification (FIG. 7), thepassword is a secret code the cardholder must use to access his or heraccount. The password is distinct from the Public Key (FIG. 9). On firstuse, no password exists and the value of Password Status (80) is [NULL].

The Cardholder or Customer Service/Telco representative enters apassword or pass phrase at Block 82. There is no maximum or minimumlength, although cardholders will be advised to select a password of atleast six alphanumerics. On [SUBMIT], the embodiment performs aUniqueness Test (84), scanning the complete Subscriber Database (14) forduplicates. NOTE: As envisioned in this embodiment, there is no need toconduct this Uniqueness Test, as each customer's primary ID is unique.Password duplications are therefore irrelevant. However, the inventorsrecognize that future or other security needs may require uniquepasswords. The password is entered into the Cardholder Database (42),and is activated pending Confirmation (78) (FIG. 18).

Modifying a password (86) utilizes standard online procedures.

Old password: oooooooooooo

New password: oooooooooooo

Confirm new password: oooooooooooo

Activate.

The changed password is stored in the Cardmember Data File (42). Theembodiment refers to FIG. 18, Confirmation of Allocations. Email (88) isa sub-routine executed whenever a cardholder revises his or herapplication information (FIG. 15). Changes to First Name, Middle Name,Last Name, Street Address, City, State (22) instruct the embodiment togenerate a new embodiment email (92). The embodiment executes itsuniqueness test (84) by a search of the subscriber database (14). Thecardholder is queried whether to replace his/her existing embodimentemail address with the new embodiment email address. (94). If YES, theembodiment enables the new address (pending confirmation). If NO, theembodiment writes the new address in the cardholder data file (42), butcontinues to display the old address.

In the event of a change in a cardholder's email (26) the embodimentreplaces the prior email field value with a new value atestablish/change redirect email (90). The embodiment's new email isactivated upon confirmation (FIG. 18).

Public Key (FIG. 9) involves a routine for allowing the cardholder todetermine what information is displayed in the searchable Public KeyDatabase (102). This database comprises the shared interface betweencardholders and is thus critical to the implementation of the method ofclaim 18, associating the mortgage with second card activity of a secondcardholder. The cardholder may elect either to Display Public Key (98),or Not Display Public Key (96) in the Public Key Database (102). If thecardholder elects to display, s/he may manage the amount of additionalinformation to be displayed in the Public Key Database (102). Thisprocess is managed through the Public Key Options (108) interface. Hereare the default values for the available options.“1” ==enabled;“0”==Notenabled; [NULL]==void; no content; REF==Referral Link

Public Key 1

Cardholder name 0

Target mortgage#

Target mortgage address 0

Cardholder embodiment email 1

Text information [NULL]

Image [NULL]

URL [NULL]

Mortgage Data Transfer REF

When activated, the embodiment retrieves relevant data from theCardholder Data File (42). Exceptions to this are Text information,Image, and URL data fields. Cardholders must enter this data themselvesusing form text fields. Mortgage Transfer Data (FIG. 20) information isnot displayed in this database. The Database Option indicates whetherthe Transfer option is active or disabled.

The inventors expect that most cardholders will display minimalinformation: Public Key, embodiment email, and Mortgage Data Transferstatus.

However, some users may be much more aggressive, even to the point ofactively soliciting contributions from other members. Other members mayjust as aggressively promote the availability of unallocated credits.Public Key Status (100) also manages Changes to a Public Key (104),resulting from changes to an application (FIG. 15). The embodimentsearches the Subscriber database (14), and if a proposed public key isunavailable, the user may Retry (106). Changes to the Public Key andDatabase Options (108) are recorded in the Cardholder database (42).

Any changes made to Public Key Status must be confirmed (78), prior toactivation.

Mortgage Allocation (FIG. 10) is a function notable possible to thisembodiment of the embodiment, using several unique programminginstructions. The embodiment queries cardholders for three types ofinformation:

-   -   which mortgages to credit (110);    -   what type of credit to perform (124); and    -   how to process the credit (133).

Cardholder Mortgage Data (110) is collected using an online form andstored in a Mortgage Data File (111), attached to the Cardholder DataFile (42).

Mortgage Data (110) identifies type of mortgage, e.g., negativelyamortizing, which can be suitable for a Sharia-compliant embodimentwhere interest or other consideration for lending is prohibited, butwhere an unpaid amount, e.g., after some period of time such as a month,is added to the principle. Sharia compliant mortgages can instigate feessuch as balance service fee, transaction service fee, annual servicefee. Sharia compliant mortgages can, for example, further query:

-   1) Diminishing musharaka principle: banks buy property, lease to    client, co-own w/client, client sublets to tenant. Client's share of    ownership increases over 25 yr. period. Rent charged is similar to    buy-to-let mortgage.-   2) Murabaha: bank buys and then sells to customer at a cost plus    profit. Total cost is paid in down payment plus installments over    time at no interest.-   3) Ijara:“rent-to-own” bank buys property then customer makes    payments to purchase over time. While making these payments,    customer also leases property from bank. The rent payments may vary    like in an ARM. When purchase price is paid, property is transferred    to customer.-   4) Declining Balance Co-ownership: bank finances purchase and    co-owns with customer. Customer makes monthly payments that    incrementally pay down purchase price and also include a charge for    exclusive use of whole property. The incremental reductions result    in an ownership transfer of that incremental portion. See, e.g., U.S    patent application Ser. No. 406010, filed Apr. 3, 2003, and having    Publication No. 20030233324, incorporated by reference.

Block (114) requests information about the Mortgagor: Name, Address,Phone, Fax, and Email. This routine draws on data gathered and stored in(133). If a cardholder elects to fund an Internal Mortgage (135), andsupplies a valid Mortgage Account # (116), then the cardholder needenter no supplemental data in Mortgage Terms (118). If the cardholderselects an External Mortgage (136), then Mortgage Terms (118) must becompleted.

Block (118) requests information about mortgage terms, including:Address of mortgaged property, amount of mortgage, due date, type ofmortgage (ARM, fixed-rate, etc.), and the status of the property:

-   -   Primary residence;    -   2nd HomeNacation home;    -   Investment/income property;    -   Business;    -   Farm/Ranch; and    -   Other (specify);

The status (enabled/disabled) of Mortgage Transfer Authorization (43)(FIG. 3) is displayed as a checkbox. Block (120) queries the cardholderabout any other mortgages s/he wishes to list. If yes, the embodimentopens a new set of information windows (114-118) to request informationabout Mortgagor 2, etc. This additive process continues until thecardholder states there are no further mortgages to list.

Once a cardholder has submitted his/her mortgage data (110), theembodiment begins the allocation process by generating a custom HTMLpage of Mortgage Allocations (124), the contents of which are diagrammedin FIG. 11, Allocation Options. The embodiment retrieves data from FIG.11, and then queries the user (2,3,4) to specify whether CreditAllocations (126), or Direct Cardholder (128) Allocations are creditedto Mortgage Principle/Closing Costs/Recurring Costs (130), or MortgageInterest (132).

In default setting is Mortgage Principle/Closing Costs/Recurring Costs(130), the user (at 2,3,4) makes this decision for each displayedAllocation generated in FIG. 11. If Mortgage Principle/ClosingCosts/Recurring Costs (130) is selected, the user then determinesPayment Method (133), with Electronic Funds Transfer (EFT) to Payee(138) the default.

Payment Method (133) initiates a sub-routine to Identify Payees (134).

Specifically, the sub-routine identifies whether a target mortgage wasmanaged by the Card issuer, referred to as an Internal Mortgagee (135),or if the mortgage is held by an Mortgagee other than the card issuer,referred to as an External Mortgagee (136). Finally, the Other Payee(137) identifier allows the cardholder to assign credit payments tothird parties with whom the cardholder/homeowner incurs recurring costs,such as utility, tax, and insurance payments.

These payments are managed via a Third Party Allocation routinedescribed in FIG. 21.

(NOTE: in some locations, mortgagee (136) may be a third entity, such asa title insurance firm performing a close.)

Optionally, cardholders may elect to receive checks (140), payable tothe target Allocation Option (FIG. 11), via their monthly statement. IfMortgage Interest is selected for any of the cardholder's activeAllocation Options (FIG. 11), then payment via check (140) is the onlyavailable option. [NOTE: this is due to the need to meet mortgagepayment due dates, which the embodiment cannot guarantee.]

If the embodiment defaults to payment via check (140), or the userselects this option, Postage & Handling Assessments (138) may beincurred. The user is so notified at the time of his/her selection, viaConfirmation of Mortgage Allocation Settings (FIG. 18), and via standardReporting (78) (FIG. 17).

Additionally, if Mortgage Interest payment (132) is selected, the usermay be allowed to deduct interest payments. In the case of a Shariacompliant mortgage, interest is not allowed but payments to rent,installment, lease, and others may be deductible. The embodimentconducts a Mortgage Deductibility Assessment (142), searching dataprovided by the user in (116) (FIG. 10). If allowed, the embodimentprepares IRS Form 1098 (144) annually. Mortgage Allocation is complete,pending confirmation (FIG. 18).

Turn now to FIG. 11, Allocation Options. Allocation Options (FIG. 11)manages four program processes: Allocation Options, Option Select,Allocation Format and Allocation Priority (146). In FIG. 11, eachfunction is placed below its description. E.g.,“Credits applied” (154)(FIG. 17) is positioned under the Option Select function.

For Allocation Options, the following Allocation Options are displayed:

-   -   a. Cardholder mortgage data (110)

If more than one mortgage (148,150), is listed, the cardholder's PrimaryResidence mortgage, if specified (116), is always listed first.Otherwise, mortgages are listed in the order entered by the cardholder.Each cardholder mortgage displays the same set of available options(Option Select, 146).

-   -   b. 2nd cardholder Contribution (160)

2nd cardholder Contribution (160) has option (Yes/No). Default is No(164).

-   -   c. Non-cardholder Contribution (162)

Non-cardholder Contribution (162) has option (Yes/No). Default is No(164).

-   -   d. Direct Contribution (180)

Direct Contribution (180) has option (Yes/No). Default is No (182).

Option Select Choices (146) are such that for each mortgage (148, 150),the customer may choose either No Credits Applied (152), a specificamount of credits [Credits Applied(154)], or all credits [All CreditsApplied (156)]. The default setting is No Credits Applied (152). If NoCredits (152) and/or Credits Applied (154) are selected for all listedmortgages (148,150), then the 2nd cardholder contribution option (160)and Non-cardholder Contribution option (162) are active and available.

If the 2nd Cardholder (160) and Non-cardholder Contribution(162) optionsare available, the default Option Select (146) setting is No (164),meaning credits or direct contributions are available, but have not beenallocated.

If the cardholder selects All credits Applied (156) for any listedmortgage, then the 2nd Cardholder Contribution Option (164) andNon-cardholder Contribution Option (162) are inactive, and appearCEgrayed out, on the cardholder or cardholder representative computerdisplay.

By selecting Yes (184), the Direct Contribution Option (180) overridesthe All Credits Applied (156) instruction and reactivates 2nd Cardholder(160) and Non-cardholder Contribution (162) Allocation Options. Defaultis still set to No (164), unless or until the cardholder selects Yes(166).

Allocation Format is such that once a cardholder or cardholderrepresentative has selected his/her options, s/he quantifies his/hercredit allocations displayed under (146) Allocation Format. If NoCredits Applied (152) is still applied to all options, then noquantification is possible; Allocation Format is not visible. If AllCredits Applied (156) is applied to any specific mortgage, then nofurther quantification is possible, and Allocation Format is notvisible. If Credits Applied (154) is active, the Allocation Formatoptions are visible.

The Cardholder or representative selects a combination of PercentageAmount (170) and/or $ Amount (168) credit allocations for each listedmortgage. Percentage Amounts (170) are error-checked by the embodimentto prevent disbursements of greater than 100 percent (174).

For EXAMPLE 1: credit allocations may be a combination of percentagesand fixed amounts. For example, a cardholder may elect to direct 50% ofall credits to his/her primary mortgage, another 25% to a 2ndCardholder,s mortgage, and $25 to a specific charity.

Assume the Cardholder has an available credit of $200. $100 would bedirected to the primary mortgage; $50 to the 2nd Cardholder mortgage,$25 to charity, and $25 would be unapplied and retained. If theCardholder has only $80 in available credits, $40 would go to theprimary mortgage; $20 to the 2nd Cardholder, $20 to the charitabledonation and no unapplied credits would remain.

In the event that credits remain unapplied (158), the embodiment invokesthe Unapplied/Unawarded routine described in FIG. 16, Cardholder CreditsFunction.

Cardholders may choose to allow credits to accumulate in order tofacilitate payment of closing costs at a later date. If 2nd Cardholder(160) and/or Non-cardholder Contribution (162) Options are available,subroutines for these processes are called by the embodiment (178) (FIG.12) and (176) (FIG. 13). If 2nd Cardholder (160) and/or Non-cardholderContribution (162) Options were called by activation of the DirectContribution (180), a % Amount (170) credit allocation is disallowed.Only a $$ Amount (186) direct contribution may be entered.

In order to make a Direct Contribution (180), the cardholder orrepresentative must specify a Frequency (188). The Cardholder orrepresentative selects whether the Contribution will occur with eachCardholder Statement (492) (FIG. 17), or One Time Only. If the latter,the embodiment processes the Direct Contribution (180), administers duediligence, then deletes the value and resets the Direct ContributionOption (180) to No (182). If repeat Direct Contributions are specified,the embodiment processes the Direct Contribution, retains the DirectContribution Option Settings, and via FIG. 17 (Reporting) issues thecardholder an electronic and print notification (190) with eachStatement (492) (FIG. 17).

Upon issuance of the notification, the Cardholder must amend or deletethe Direct Contribution within a specified time, or it will bereapplied.

Direct Contribution Target Allocations (200) is the list of availableAllocation Options to which Direct contributions may be made. Theembodiment retrieves data from FIGS. 10,12, and 13, allowing thecardholder or representative to select from the cardholder's mortgages,available Non-cardholders, and 2nd Cardholder mortgage pools. In thethird case, search & confirmation routines may be invoked. These aredescribed in FIG. 13 and its dependent illustrations.

With regard to Allocation Priority, the Cardholder (2) or representative(3,4) has identified all his/her proposed credit allocations. Now, s/heprioritizes these allocations at Allocation Priority (146). DirectContributions are the equivalent of cash contributions. Consequently,there is no need to prioritize Direct Contribution Options (180). Onceconfirmed (FIG. 19), they are executed. Each active Allocation Option(146) is ranked by importance at Prioritize Allocations (172), with thehighest priority item receiving a“1”. Priority numbers are determined bythe formula (NUM_OPTIONS==TOTAL_NUM_PRIORITY). For example, if there arefive active Allocation Options, then the Cardholder or representativeranks the Allocation Options as 1, 2, 3, 4, or 5.

For EXAMPLE 2: In the previous EXAMPLE 1, credit allocations wereassumed to be prioritized as entered: 50% toward a cardholder primarymortgage; 25% to a 2nd cardholder mortgage; $25 to charity, and anyremainder as an unapplied credit. In those cases where available creditsare greater than specified allocations, allocation priority is not afactor. However, in cases where available credit is less than specifiedallocations, Allocation Priorities can significantly affect allocations.In the prior example, we last assumed the Cardholder had only $80 inavailable credits. $40 was allocated to the primary mortgage; $20 to the2nd mortgage, and $20 to charity. If the charitable donation was giventop priority (“1”), the $80 of credits would be distributed: $25 tocharity; $40.00 to the primary mortgage; and $15 to the 2nd cardholdermortgage. Taken further, if $50 of credits were available, $25 would goto charity, $25 to the primary mortgage, and $0 to the 2nd Cardholder.Mortgage Pool Allocation (FIG. 12) is a sub-routine within theAllocation Options (FIG. 11) process. As described in FIG. 11 above,users may elect to award credits to non-cardholders, which may becomprised of select individuals, community groups, and charitableorganizations. The intent of the embodiment is to enable users tocontribute to mortgage“pools”^ Pool Participant Database (204), whichassist lower-income, disadvantaged, handicapped, first-time, or otherqualifying potential homebuyers, efforts to secure a mortgage. Whilethis is the intent, it is not a rigorous standard. Any worthy charity orgroup may be selected for inclusion (206-212).

The user may elect to award to credits to as many available choices ass/he desires. The value of the awards (214-220) may also vary. Again,the user has the option of specifying Credit Allocations (136) and/orDirect Cardholder Allocations (128) stated in FIG. 11 AllocationOptions, to his or her Mortgage Pool Allocation (222).

The embodiment then queries Payment Method (133): whether to deliver theallocations via EFT, or as a check(s) sent to the cardholder via his/herstatement and addressed to the pool recipient(s) (206-212). In thelatter case, a Postage & Handling Assessment (138) may be executed, asthe inventors anticipate that licensees may seek to discourage CEhardcopy, disbursements.

The cardholder selections are confirmed (78). If annual charitablecontributions exceed $75, the embodiment delivers an online and printedstatement of the value of the donations per IRS guidelines (438). (SeeReporting, FIG. 17).

Turning now to 2nd Cardholder Mortgage Allocation (FIG. 13), there isshown a process whereby a Cardholder may direct credit awards to anyother Cardholder and to any number of Cardholders. All cardholderstheoretically may be 2nd Cardholder Mortgage Allocation recipients aswell as primary cardholder contributors.

Critical to 2nd Cardholder Mortgage Allocation is the Public Key,described in FIGS. 9 and 19. A cardholder maintains (at FIG. 9) either aPublished (98) or an Unpublished Public Key (96). The degree ofinformation displayed in the Public Key Database (102) also may becontrolled by the cardholder. The cardholder further is able to managethe degree of information and control s/he wishes to display or allow(FIG. 14) when contributing to a 2nd Cardholder.

The process begins by a user activating the 2nd Cardholder Option inFIG. 11 (166). The 2nd Cardholder Allocation is executed as asub-routine of FIG. 11. Gathering 2nd Cardholder Data (440) can involveseveral steps.

Restrictions (441) is a sub-routine described in FIG. 14. Settings fromFIG. 14 are parsed here (441). Public Key Search (442) is a tool tolocate any cardholder's Public Key. If a desired Public Key ispublished, the user (2, 3, 4), is linked to a display of that 2ndcardholder's Public Key database information (102), as determined inFIG. 9. If the Public Key is not known or otherwise unavailable, theuser must initiate a 2nd Cardholder Public Key Authorization Request(FIG. 19, 446). This process is repeated for each additional non-primarycardholder mortgage (444). At this point, the embodiment reiterates theprocess described in FIG. 10, Mortgage Allocation. The user (2, 3, 4)allocates credits and/or direct cardholder contributions (126,128)toward principle and or mortgage interest (130,132). Payment method(134,136, 140) is selected, and tax credits, if any, are determined(142, 144).

Selections are confirmed via (78) FIG. 18, and see 2nd CardholderMortgage Allocation: Restrictions (FIG. 14). FIG. 14 is the cardholder,sdisclosure record. A database record is maintained at FIG. 13 (441) foreach 2nd Cardholder Mortgage Allocation. E.g., the primary cardholdermay choose to disclose more information to one recipient than toanother.

The query options are:

-   -   Disclose cardholder name? (447)

Selecting Yes means that the 2nd cardholder Received Credits Report(496) (FIG. 17) will include the contributor's name & email information.

-   -   Disclose value/amount of contribution? (448)

Selecting yes discloses the cumulative value of the cardholder,scontribution in the Received Credits Report (FIG. 17).

-   -   Allow 2nd Cardholder to reallocate?(450)

If yes, the 2nd cardholder may use the credit contribution any allowedpurpose. S/he may contribute to a non-cardholder, or pass credits toanother cardholder.

Consequently, the primary cardholder may be entitled to receive taxbenefits. The embodiment examines the 2nd cardholder settings andallocations (456), and issues a charitable donation form as needed(438).

Principle only? (452) pertains to the cardholder optionally specifyingthat contributions may be used solely to pay down the 2nd cardholder,smortgage principle. However, if interest payments are enabled, theembodiment will query primary and 2nd cardholder settings to determinewhether the either party may receive an interest tax credit (142,144).

Disclose terms? (454) optionally determines whether the above conditionsare shared with the 2nd cardholder. If yes, they are disclosed in thecardholder's Received Credits Report (FIG. 17). Settings changes areconfirmed via FIG. 18 (78), and turn now to Application Modification(FIG. 15).

Application Modification (FIG. 15) is the final Settings Functionprocess. It employs well-known programming to allow cardholders toupdate original Card Application (FIG.2,3,4) in the event of a change inaddress (22), telephone (28), email (26), Mortgage Data Transfer (43),name (22), or other information (456). In the event of a change inAddress (22) or Telephone (28), a new Public Key (38) will be generatedreflecting the revision. The embodiment references FIG. 9 Public KeyStatus. Similarly, in the event the Zip Code field of an Address (22) ischanged, and/or a cardholder's email (26), a new embodiment email (92)and/or email redirect (90) is generated for the user. The embodimentreferences FIG. 8 Email Setting. NOTE: the user may elect to continue todisplay his/her prior email, or elect to use the new address.

Additionally, the embodiment recognizes that certain changes to anapplication may require special handling. Thus, Name (22) changes forreasons other than marriage (458), and unspecified changes (456) arereferred to a Customer Service (460) representative. The embodiment canbe configured to initially display an“800” number for Customer Service,but live online help is within the scope of the embodiment.

The embodiment queries whether the user wishes to save other changes(462). If YES, the embodiment references FIG. 8, Confirmation ofAllocations (78).

If NO, the existing page remains on screen. In order to completeCustomer Service Referrals (460), the user contacts CustomerService/Telco (3).

An authorized Customer Service/Telco representative Logs In (464), thenqueries the cardholder and enters data (466). Any changes are confirmed(78).

In Cardholder Credits Function (FIG. 16), the Cardholder CreditsFunction manipulates data received from Cardholder Transactions (FIG. 5,62), Credit Calculation (468) rates, and the Cardholder's Settings (FIG.6 et. al.) to Pay Allocated Credits (476).

A key feature of the embodiment is its ability to discriminate betweenMortgagee Credits (469), awarded by Internal (135) and External (136)Mortgagees. In order to attract business, Internal Mortgagees (135) mayoffer higher credit rates if a cardholder moves his/her mortgage totheir institution, or waive transfer or refinance charges, or offer anyother legal incentive. Conversely, External Mortgagees(136) may offercredits to cardholders who open a checking, saving, or other account, orany other legal purpose.

All such offers are set and offered behind a firewall (480), thatforbids cardholder access to the Mortgagee credit-setting process. Oncedetermined, Mortgagee Credits are transmitted via Network Systems (5) tothe Credit Calculation function (468).

The embodiment takes into account whether or not Payment Terms (470)have been satisfied, and reports outcomes to FIG. 17 Reporting (478).The Cardholder Credits Function exists wholly behind a firewall (480).Cardholder Credits Function is not directly accessible by cardholders(2), Customer Service/Telco (3) or Customer Service/Mail (4)representatives.

Cardholder Transaction data (62) for the current statement period isimported from FIG. 200. Credit and Transaction Service Fee Calculationsare reviewed (468) and performed to determine the total number of newcredits to be awarded. This calculation may be based on any reasonableformula; e.g., 5% of a single or total purchases recorded during thecurrent period; 1% of total purchases+10% of balance carried forward,etc.

The inventors assume that licensed versions of the embodiment may offerdifferent Credit Calculation award structures.

Possible restrictions on payments are reviewed in Payment Terms (470).Once again, this is a formulaic review based on standards established bythe embodiment and/or its licensees. For example, awarded credits may bewithheld [Withheld Credits (474)], from cardholders who are behind inpayments; have paid an insufficient portion of an outstanding balance;have exceeded authorized credit limits; have outstanding contestedcharges; etc. The embodiment may also issue a portion of awarded newcredits rather than all, or no credits. A regular payment review (472)is conducted, based on either statement schedule or cardholder request.If payment is not satisfied, a balance service fee may be added and theappropriate mortgage(s) balance is increased (600) and card payment (60)is transferred.

If any credits are issued, the embodiment will Pay Allocated Credits(476) according to Cardholder Settings for the Non-Cardholder MortgagePool (202), Third Party Allocations (137), Cardholder Mortgage (110),Additional Cardholder Mortgages (120), and 2^(nd) Cardholder Mortgages(440). Credit Allocation and Mortgage Increase results are referred toFIG. 17 Reporting (478). Sharia Compliant Mortgage increases arereported to FIG. 22. Sharia Mortgage Data (110) triggers appropriateincrease/decrease (601) in % ownership and beneficial interest (603) andin the mortgage structure (602). Unapplied Credits (158) ^ that is,credits remaining after the Cardholder's Settings Allocations have beencompleted ^ are also referred to FIG. 17 Reporting. Unapplied Credits(158), along with Withheld Credits (474), are reviewed for possibleCredit Interest Calculation (476).

This is a variable formulaic process wherein the embodiment and/or itslicensees may award additional credits to unallocated credit caches. Theprocess functions as a CEsavings account, for the cardholder.

Any legal formulaic calculation is allowed. For example, a licensee maychoose to award 1 additional credit for every 100 unapplied credits. Or,a licensee may choose to allow a cardholder to apply unapplied creditsto his or her credit card Minimum Payment Due or outstanding balance.

The outcome of any Credit Interest Calculation (476) is referred to FIG.17 Reporting. Reporting Function (FIG. 17) addresses this is theembodiments due diligence process. In brief, Reporting (FIG. 17)prepares and distributes (500) the cardholder's regular Statement (492).The Statement (492) reviews current transactions (62), the disbursementof cardholder credits (482,484,486,488), any receipt of credits fromother cardholders, charitable organizations, government entities, orother third parties (496), Direct Contribution (128), and thecardholder's current Settings (FIG. 6, 498). It also includes a Forecast(490), which embodies claims 7 and 8 of the embodiment, computing aforecast for repayment of the mortgage and communicating the forecast tothe cardholder.

Using Network Communications Systems (5), a cardholder (2), may reviewhis/her Online Statement (502) using a Data Input Screen (1). TheCardholder may access Cardholder Settings (FIG. 6), but further accessto the Reporting Function by the cardholder is barred by firewall (480).

Similarly, transaction data (62) is transmitted to the Central Processor(7), but further access is prohibited by firewall (480). [The inventorspresume that third party transaction data will be transmitted to theembodiment by a TCP/IP-enabled Electronic Data Interface (EDI) system.

The following credits and debits are reported:

For Sharia mortgages, applied increases and decreases (601) in %ownership and beneficial interest (602) and in mortgage structure (602).

Any increases and decreases in negative amortization field and mortgagepayment fields (110), (120).

Pending Credits, which are retrieved from the FIG. 16 CreditCalculation.

Pending Credits (482) represent the maximum number of new credits acardmember has earned, including withheld credits (604);

Available Credits (484) is the sum of [Pending Credits (482)]+[Unapplied Credits (158)]—[withheld credits (474)];

Invested Credits (486) details the cardholder's total credit allocations(FIG. 16) for the reporting period;

Cleared Credits (488) details cardholder credit allocations that wereapplied by the recipient(s) during the reporting period;

Direct Contributions (128) details the cardholder's total directcontributions (FIG. 16) for the reporting period;

Received Credits (496) details credits received by the cardholder fromother cardholders;

All reported information is recorded in the Cardholder Data File (42).Additionally, this information is employed by the embodiment to preparethe cardholder's mortgage forecast (490).

The Cardholder Data File (42) for the reporting period is included inthe Cardholder Statement (492), which also contains transaction (62)data and cardholder payment (60) information supplied by theprovisioner. The Statement also includes the Forecast (490), andCardholder Settings (FIG. 6, 498). These relationships are shown asdotted lines for clarity purposes; in fact, all data is already storedin the Cardholder Data File (42).

The embodiment distributes the Statement (492) as both an onlinedocument (502), and a mailed statement (506). Checks, if any (504) areenclosed in the mailed statement, pursuant to claims 2 and 3, whereinthe embodiment communicates a funds transfer to the cardholder, prints acheck for the amount, prints a coupon with the amount for carrying outpayment of the mortgage with the check, combining the check and thecoupon with a statement of the card activity so as to address theenvelope to the cardholder. Checks directed to a mortgage servicersatisfy claims 4 and 6 of the embodiment, wherein a funds transfer iscommunicated to a mortgage servicer, including printing a check for theamount, printing a coupon with the amount for carrying out payment ofthe mortgage with the check, and combining the check and the coupon witha statement of the card activity in an envelope so as to address theenvelope to the mortgage servicer.

Focus now on Allocation Confirmation (FIG. 18) which illustrates aroutine is called throughout the embodiment. Whenever a cardholder orcardholder representative changes his or her settings (FIGS. 6-15), FIG.18 Confirmation requests confirmation of the changes. As previouslydescribed, changes to settings initiated with a computer by a cardholder(2) or a cardholder Customer Service representative (3,4) aretransmitted via Network Communications Systems (5) to the embodiment'scomputers (7). Alterations are entered into the Cardholder Data File(42), and are flagged as pending, (518) prior to confirmation andenabling (520).

The following description utilizes reasonably common confirmationprotocols. The embodiment dispatches a confirmation email to thecardholder embodiment email and email redirect (508). The confirmationemail details each proposed alteration and requests that the cardholderreject or confirm the changes (510). The response mechanism (510) is anonline form field containing the following:

The embodiment displays each proposed change, with a Yes and No checkboxbeside each. The cardmember approves or rejects. The embodiment displaysa text field for the Public Code of the cardholder, and the CardholderPassword. The user (2,3,4) enters the Public Code and Password, whichthe embodiment checks against the cardholder data file (42).

If either entry is incorrect, the embodiment prompts the cardholder orrepresentative to try again. If a correct entry cannot be made, theembodiment characterizes the attempt as equivalent to“no response”.

If the cardholder responds“reject”, the proposed alterations arediscarded (512).

If the cardholder authorizes the changes (514), the settings areenabled.

If no response is given, i.e., the cardholder does not respond to theconfirming email a second attempt at confirmation is made via thecardholder's subsequent Statement (492).

The statement form request (522) is similar to the online versionoffered in (510). The statement form (522) offers the cardholder threeconfirmation methods: via email, telco, and statement. If the cardholderopts to confirm using his/her statement, his/her signature replaces thePublic Key and Password as confirmation. If no response is forthcoming,of if the changes are rejected, the proposed alterations are discarded(512).

If approved, the settings alterations are enabled (514) and recorded inthe Cardholder Data File (42).

Public Key Authorization Request (FIG. 19) illustrates the concept ofmortgage pooling (FIG. 10, 440) is unique to the embodiment. Aspreviously described, cardholders exercise absolute control over thepersonal information they choose to display in the Public Key database(102), and also the amount of information and control they wish toprovide recipients of credits (FIG. 14).

The degree of cardholder control ranges from aggressively promoting theneed for or availability of credits, to revealing no informationwhatsoever, Public Key included. The embodiment therefore must allow fora wide range of Public Key disclosure.

The Authorization Requests begins with a cardholder identifying thePublic Key of another cardholder (524). If the Public Key of a 2ndcardholder is unknown, the cardholder searches the Public Key Database(102), which may be searched by any of the criteria listed in FIG. 9,Database Options (108).

In all searches the central processor (7) confirms the existence of aPublic key (540) before proceeding.

If the Public Key is unpublished (96), the embodiment will generate aPublic Key Disclosure Request (526), which is relayed via email throughNetwork Communications Systems (5) to the 2nd cardholder's data terminal(528).

For this communication to take place, the cardholder (2) must know the2^(nd) cardholder's embodiment email. If the 2nd cardholder refuses toprovide his or her Public Key to the cardholder and thus rejects thecredit offer (530), then the embodiment dispatches an email to thecardholder so stating (532).

As an EXAMPLE, assume that parents seeking to contribute to a child,smortgage will telephone the child to request the Public Key, orembodiment email. In other instances, a cardholder may only list his/heremail in Database Options (108), thus involving all cardholders insubmitting a respective formal request for the Public Key.

If the 2nd cardholder (528) agrees to provide his/her Public Key, theembodiment dispatches an email to the cardholder so stating, includingthe Public Key ID (534). The embodiment Central Processor (7) transmitsthe Public Key to the cardholder (2) via Network Systems (5). Thecardholder (or representative) now is able to offer a mortgagecontribution to the 2^(nd) cardholder (528). The offer is passed viaNetwork (5) to the 2nd cardholder, who either accepts (536) or rejects(542) the proposed contribution. The Network (5) transmits the outcometo the embodiment Central Processor (7).

Upon acceptance, the embodiment generates an acceptance email (538),which is forwarded to the cardholder (2). Upon rejection, a rejectionemail (546) is dispatched to the cardholder (2).

In either case, the cardholder and 2nd cardholder data files (42) areupdated to incorporate allocation changes, if any. Settings (FIG. 6-15),Credit Allocations (FIG. 16), are modified to reflect any changes. Theembodiment exercises due diligence and conveys the authorization requestand its outcome to FIG. 17 reporting.

Turn now to Auction Management (FIG. 20) wherein an Auction Managementprocess is illustrated. In brief, data gathering authorized by thecardholder is made available to lending companies willing to compete forthe cardholder's mortgage account, with an object of lowering acardholder's ongoing mortgage costs. The process incorporates themethods of 2nd Cardholder Mortgage Allocations (FIG. 13), Mortgage PoolAllocations (FIG. 12), 2nd Cardholder Restrictions (FIG. 14), Public Keygeneration (FIG. 9), and Public Key Authorization (FIG. 19).

This process is enabled whenever a cardholder authorizes a Mortgage DataTransfer from his or her mortgage provisioner (FIG. 3, 43). Theembodiment Central Processor (7), drawing on mortgagee data supplied bythe cardholder (2) and stored in the Cardholder Data File (42),initiates a Network (5) request to the mortgagee for the transfer of thecardholder's mortgage data (6).

Retrieved Mortgagor Mortgage Data (6) is stored in a sub-directory ofthe Cardholder Data File's (42) Cardholder Mortgage Data File (111),called the Cardholder Mortgage E-file (550). This sub-directory isseparated by firewall (480) from the balance of the Cardholder DataFile. Each Cardholder Data File is stored within the comprehensiveSubscriber Database (14).

Other mortgage lenders may now query the Subscriber Database's (14)Cardholder Mortgage E-Files (550). And, if so determined, tender aMortgage Lender Tender Offer (554) via network communication systems (5)to any participating Cardholder Data Terminal (2).

The rationale for lenders to participate in the Auction is discussed inthe Objects of the Embodiment. The inventors anticipate that the Auctionwill be a highly desirable tool for both lenders and consumers. To thatend, the embodiment anticipates establishing Lender Terms (572), whereinthe embodiment and/or its licensees may potentially involve any lenderwho tenders an offer must agree to make its own lender pool dataavailable to the embodiment.

Once an offer has been tendered, the cardholder may Reject (568) theoffer; Counter (556), or accept the proposed mortgage (558). In thefirst case, the Central Processor (7) dispatches a rejection email (570)to the mortgage lender. In the case of a counter, the cardholderdirectly sends a counter email (556) to the mortgage lender, who may ormay not enter into further negotiations (562) with the cardholder (2).Finally, if an offer is accepted, the Central Processor dispatches anAcceptance email (566) to the selected lender (560), which Negotiates(562) with the cardholder (2).

In the event of a successful transaction, the embodiment CentralProcessor (7) computes and assesses any Enabling Fees (564) chargeableto the Selected Lender (560) or cardholder (2). These fees are formulaicin nature, and may be either a fixed fee, a commission, or nothing.Negotiated fees, i.e., negotiated on a case-by-case basis ^ are alsopossible, based on the discretion of the inventors and licensees.

If an Auction is successful, the Central Process (7) updates numerousfunctions, including the Application (FIG. 2 and 15), MortgageAllocations (FIGS. 10 and 11), email and Public Key (FIGS. 8 and 9), andthe Crediting and Reporting functions (FIGS. 16 and 17).

Turning to FIG. 21, which manages the allocation of credits to ThirdParty payees such as insurance, tax, and other entities describedherein. Third party payees are stored within a Third-Party AllocationFile (580) unique to each cardholder account. Each cardholder file ispart of a universal Third Party Master Allocation File Master (594),protected by a Firewall (480) from access by individual cardholders. Theprocess of allocating credits to Third Parties is like that used forother forms of allocations. The cardholder enters a Payee Name andAccount # (582), the amount of the Credit Allocation (126), theFrequency (584) of the allocation [Note: a one-time allocation is thedefault; the cardholder may change this setting to ‘recurring.’] Thecardholder also may authorize that additional monies be paid directlyfrom his or her card by entering a total contribution amount in DirectCardholder Contributions (588). [NOTE: because of the inherentlyvariable nature of earned credits, the inventors assume that manycardholders will opt to specify a total amount of contributions to bepaid each month for available Third Party Allocations, comprised ofearned credit contributions plus additional funds paid via the card.]

Once this data has been entered by the cardholder, the embodimentsearches the Third Party Allocation File Master (594) to determine ifpayment protocols for each specific third party allocation alreadyexist. If the third party data already exists, the cardholder confirmsthe Payee Data Record (586) and proceeds to select a Payment Method(133). If data is not available, or is erroneous, the cardholderproceeds to Payee Account Information (590), including mailing address,contact information, and other such data as may be used to deliverpayment promptly and properly.

Once the cardholder has entered this information, the embodimentdetermines whether payment may be made via an Availability Review (592).The inventors anticipate that completion of the may not always bepossible to conduct without human intervention. Some Third Party payeesmay not have EFT capability; may refuse to accept credit card payment;

may refuse to accept partial payment, etc. Consequently, the process ofreviewing and authorizing payments may not always be instantaneous, andmay sometimes result in a denial of service. Additionally, the P&HAssessments may be levied (139).

For third party vendors able to participate in this payment system, theuser now selects Payment Method (133), either an Electronic FundsTransfer (EFT) (138), or a check to the payee, sent via the monthlystatement to the cardholder (140).

This selection process is repeated for each Third Party payee.

Allocation Settings (78) are confirmed. The Mortgage Data File (111) andthe Cardholder Data File (42) are updated as needed. Reporting (13)information is updated, and the Cardholder Credits Function (12) isupdated.

Consider now an embodiment viable in its own right that happens to alsobe representative or a Sharia-compliant approach.

Illustrative (not intended to be limiting by a representative teaching)is a Shariah-compliant charge card (SCCC) linked to a mortgage haspreviously eluded those in finance, but solutions are hereby proposed. Aconsumer who has a mortgage or is getting a mortgage uses the SCCC. Eachtransaction generates a fee, let's call it a“guarantee fee” of avariable amount, and for illustration purposes let's say it is 6% of thepurchase price. On a $100 purchase, the total cost becomes $106, andrepayment can be structured over a specified time frame, say 12 months.In this instance, the consumer will pay $106/12 monthly for one year. Ifscheduled payments are not made on time, the late payment amount willtransfer to a mortgage balance.

As payments of the late payment amount are made, that amount will bededucted from a mortgage balance. Another method for incentivizingpayments is to have the consumer donate to a charity and the embodimentmakes provisions for this. Other forms mortgages, such as constructionloans and home equity loans, can also be linked to a credit card. Otherassets can also be linked to the credit card like automobiles andequipment. Debt instruments or liens can be used to provide security forpurchases.

An improvement upon these Shariah compliant scenarios is to add anoptional rewards feature that rewards card usage and may possibly rewardtimely payments. Each purchase transaction can generate a reward thatreduces the mortgage (or debt or lien) balance. Timely and even earlypayments can also generate rewards that reduce the mortgage balance butthese rewards cannot be a condition for earlier payment and the cardissuer must give these rewards voluntarily. Therefore, card usage andtimely payments can reduce a mortgage balance and late or missingpayments can increase a mortgage balance.

Other assets may also be used to guarantee the debt such as autos orequipment. In these cases, instead of or even in concert with amortgage, unpaid or late credit card debt can be liened on other assets.

A Shariah compliant credit card can assist with monitoring transactionsto restrict the purchase of unlawful goods and services, and to assurethat card usage is for the real sale of some commodities and not justthe advancement of a loan to pay salaries, electric bills, other loans,etc.

The rewards and late payments that can flow into and out of the mortgagecan be credited or debited from any of the various parts of a mortgagepayment or combination thereof: those parts are principal, interest,taxes, and various forms of insurance although interest would not bepresent in a Shari'ah compliant mortgage. If no mortgage exists on aproperty, liens can be recorded and, since no mortgage exists, taxes andinsurance can be paid using rewards or increased if there are paymentproblems. A similar situation exists when other assets are being lienedin terms which part of the debt payment is credited or debited and thepotential for liens if the assets don't carry debt.

The rewards currency can vary: cash or cash equivalents, credits, rewardcertificates, rebates, and points. Rewards can also be earned throughpatronization of acceptable entities such as businesses, unions, andother groups or coalitions of entities. This will allow the potentialfor greater rewards and increased patronization of certain entities. Forexample, when purchasing a house, the consumer could receive a bundle ofrewards from realtors, title companies, lenders, appraisers, attorneys,credit companies, house inspectors, insurers, builders and developers,building materials companies, unions, contractors transportationcompanies, government or quasi-government entities, etc. In thisinstance, the rewards could be used for more than reducing the mortgage:downpayment, various fees, upgrades, land purchase, and various othercosts associated with a home purchase and construction. These entitiesand their practices could be screened for compliance with Islamic Lawsand practices.

Embodiments herein encompass an improved digital electricalcomputer-based system: a machine (programmed computer), methods formaking and using it, products produced by the method, articles, datastructures, and necessary intermediates, collectively referenced hereinafter as the method (for the sake of brevity). Accordingly theembodiment can be exemplified as a computer-aided method such as thatfor card (bank, credit, debit, or the like) activity-based mortgagecrediting. More particularly, the foregoing can be carried out by stepsincluding: associating card activity with a mortgage of a cardholder;crediting an amount to the mortgage responsive to the card activity; andgenerating output including the charge card activity-based mortgagecrediting; wherein at least some of the steps are carried out by adigital electrical computer.

In any of the embodiments, the method can be carried out furtherincluding the step of: using a second computer to compute a valuation ofa mortgage-backed security in response to indicia of said crediting ordebiting.

In any of the embodiments, the method can be carried out furtherincluding the step of: executing an agreement between customer, cardissuer, and mortgage servicer for adding an amount to a mortgage.

In any of the embodiments, the method can be carried out furtherincluding the step of: executing an agreement between mortgage servicerand investor for adding an amount to a mortgage.

In any of the embodiments, the method can be carried out furtherincluding the step of: executing an agreement between customer and cardissuer to have unpaid balances paid by a mortgage.

In any of the embodiments, the method can be carried out furtherincluding the step of: executing an agreement between customer andmortgage servicer to pay unpaid card balances with proceeds derived froma mortgage and add that balance to the mortgage.

In any of the embodiments, the method can be carried out furtherincluding the step of: executing agreements between parties reflectiveof state and country and treaty specific laws.

In any of the embodiments, the method can be carried out furtherincluding the step of: adding a balance service fee to the card balancefor unpaid balances when payment is due.

In any of the embodiments, the method can be carried out furtherincluding the step of: adding an annual service fee to the card balance.

In any of the embodiments, the method can be carried out furtherincluding the step of: in the case of a Shari'ah compliant card, addinga transaction service fee, say 5% of the transaction amount, to the cardbalance.

In any of the embodiments, the method can be carried out furtherincluding the step of: periodically adding an amount to a first mortgageas exemplified by a negative amortization mortgage but adapted toinclude an unpaid card payment amount.

In any of the embodiments, the method can be carried out furtherincluding the step of: adding an amount to first mortgage principal,purchase price amount, interest, taxes, insurance, installment, rent,lease or fee payment

In any of the embodiments, the method can be carried out furtherincluding the step of in the case of a Sharia compliant first mortgage,not adding an amount to interest.

In any of the embodiments, the method can be carried out furtherincluding the step of: in the case of a Sharia compliant mortgage,reducing and increasing ownership amounts of the co-owners andshareholders reflective of an increase in mortgage balance.

In any of the embodiments, the method can be carried out furtherincluding the step of: transferring funds to pay unpaid card balance.

In any of the embodiments, the method can be carried out furtherincluding the step of: periodically adding an amount to a secondmortgage as exemplified by a negative amortization mortgage but adaptedto include an unpaid card payment amount.

In any of the embodiments, the method can be carried out furtherincluding the step of: adding an amount to a second mortgage principal,purchase price amount, interest, taxes, insurance, installment, rent,lease or fee payment.

In any of the embodiments, the method can be carried out furtherincluding the step of: in the case of a Sharia compliant secondmortgage, not adding an amount to interest.

In any of the embodiments, the method can be carried out furtherincluding the step of: creating secondary market investment vehicles forcards and first mortgages linked in order to pay card balances with amortgage.

In any of the embodiments, the method can be carried out including thesteps of:

activating a Shari'ah compliant mortgage with fungible balances.

In any of the embodiments, the method can be carried out including thesteps of: communicating an increase in a mortgage balance in response toa late or missing payment.

In any of the embodiments, the method can be carried out including thesteps of:

communicating an increase in an asset debt balance in response to a lateor missing payment.

In any of the embodiments, the method can be carried out including thesteps of:

communicating an increase in a lien in response to a late or missingpayment.

In any of the embodiments, the method can be carried out including thesteps of: creating a lien in response to a late or missing payment.

In any of the embodiments, the method can be carried out including thesteps of: calculating reward amount in response to card payment activityand crediting an optional amount to a mortgage.

In any of the embodiments, the method can be carried out including thesteps of: calculating reward amount in response to card payment activityand crediting an optional amount to a lien.

In any of the embodiments, the method can be carried out including thesteps of: monitor card purchases for Sharah compliance.

The method of the embodiment also is applicable to other significanthomeowner expenses, such as: payment and management of health careexpenses, including doctor's visits, prescription costs, hospitalexpenses, and preventive care; insurance premiums, co-payments anddeductible expenses; planning for and provision of elder care, includingnursing and assisted living expenses, senior center and wellnessprograms; credits toward long-term care, including premium payments,medical expenses, equipment costs, hotel, hospice, and home careexpenses, and prescription and other treatment payments; contributingtoward day care costs; contributing toward a college fund, or directlyto college tuition and room and board; contributing toward weddingcosts, including formal wear purchases and rental, flowers anddecoration, banquet, and direct contributions to bridal/marriageregistries, and; contributing toward funeral costs, including burial andcremation costs, shipping and transport, applicable death taxes, andcontributing toward a probate fund or payment of probate taxes to anyauthorized party.

Although only a few exemplary embodiments have been described in detailabove, those skilled in the art will readily appreciate that manymodifications are possible in the exemplary embodiments withoutmaterially from the novel teachings and advantages herein. Accordingly,all such modifications are intended to be included within the scopedefined by claims. In the claims, means-plus-function claims areintended to cover the structures described herein as performing therecited function and not only structural equivalents, but alsoequivalent structures. Thus, although a nail and a screw may not bestructural equivalents in that a nail employs a cylindrical surface tosecure wooden parts together, whereas a screw employs a helical surface,in the environment fastening wooden parts, a nail and a screw may beequivalent structures.

1. An apparatus including: a first computer system, enabling a debit tobe incurred in connection with usage of a credit or charge card, thatcommunicates, responsive to a late or missing credit or charge card debtpayment, with a second computer system enabling a mortgage, configuredto carry out the steps of applying an amount that is late or missing forthe payment to increase a balance on the mortgage, and generating outputshowing the amount applied to the mortgage balance; wherein the mortgageis of a type that consideration for lending for the mortgage isprohibited.
 2. The apparatus of claim 1, wherein the credit or chargecard is a credit card.
 3. The apparatus of claim 1, wherein the creditor charge card is a charge card.
 4. The apparatus of claim 1, whereinthe mortgage is a first mortgage.
 5. The apparatus of claim 1, whereinthe mortgage is a second mortgage.
 6. The apparatus of claim 1, whereinthe consideration is interest.
 7. The apparatus of claim 6, wherein thecomputers cooperate to compute a valuation of a mortgage-backed securityfor the mortgage.
 8. An apparatus including: a computer system applying,responsive to a late or missing credit or charge card debt payment, thedebt incurred in connection with usage of a credit or charge card, anamount that is late or missing for the payment to a real estate mortgageto increase a balance on the mortgage, and generating output showing theamount applied to the balance; wherein the mortgage is of a type thatconsideration for lending for the mortgage is prohibited.
 9. Theapparatus of claim 8, wherein the mortgage is a first mortgage.
 10. Theapparatus of claim 8, wherein the mortgage is a second mortgage.
 11. Theapparatus of claim 8, wherein the consideration is interest.
 12. Theapparatus of claim 11, wherein one of the computers enables computing avaluation of a mortgage-backed security for the mortgage.
 13. Theapparatus of claim 8, wherein the computer system includes a computerwhich computes a valuation of a mortgage-backed security for themortgage.
 14. An apparatus including: computers cooperating responsiveto a late or missing credit or charge card debt payment the debtincurred in connection with usage of a credit or charge card, to receiveinformation in memory and to process the information to produce outputshowing an amount that is late or missing for the payment applied toincrease a balance of a real estate mortgage; wherein the mortgage is ofa type that consideration for lending for the mortgage is prohibited.15. The apparatus of claim 14, wherein the mortgage is a first mortgage.16. The apparatus of claim 14, wherein the consideration is interest.17. The apparatus of claim 14, wherein one of the computers enablescomputing a valuation of a mortgage-backed security for the mortgage.18. A non-transitory computer-readable media tangibly embodying programinstructions executable by a processor to cause a computer to carry outthe operations of: applying, responsive to a late or missing credit orcharge card debt payment, the debt incurred in connection with usage ofa credit or charge card, an amount that is late or missing for thepayment to a real estate mortgage so as to increase a balance on themortgage, and generating output showing the amount applied to thebalance; wherein the mortgage is of a type that consideration forlending for the mortgage is prohibited.
 19. The computer-readable mediaof claim 18, wherein the media comprises at least one of a RAM, a ROM, Adisk, an ASIC, and a PROM.
 20. The computer-readable media of claim 18,wherein the consideration is interest.